- 10 Mar, 2021
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EMPLOYEE TURNOVER
Instructions
I need the following document in a powerpoint presentation
“When workers make more money, they respond by being more productive in their jobs and are less likely to leave, reducing the turnover cost. This puts money in business’ pockets, and workers also then have more money to spend in the local economy.” David Rolf. In my report I seek to find more on the impacts of increases employee turnover in the USA as well as the mitigation factors that may be put in place to remedy the situation. Although employee turnover may be associated with a healthy economy where the employable population has access to new opportunities, the same can be detrimental to an organization and the economy at large.
Employee turnover is one of the most excruciating organizational issues that plague a firm. Statistically it has been found that replacing an employee comes with a substantial cost to the firm, this according to the Center for American progress. For example, employees earning a salary of $50,000 p.a which is almost 75% of the entire employees in the USA, the turnover cost is 20% of the salary. This cost is incurred in backfilling roles for the vacant positions such as recruiting, salary on hiring as well as onboarding costs. There are also issues of litigation. Statistically in the year 2017, the employee turnover trends increased by 8.3% from the previous year and constituted an 88% increase since the year 2010. In the year 2018, the overwhelming 41.4 million workers in the United States willingly left their occupations, which constituted a turnover of approximately 27% as shown in figure 1 (Retention Report, 2019). In April year 2020, the total number of departures declined by 4.8 million to approximately 9.9. Within departures, the rate of voluntary quits decreased by 1.4 % while discharges and layoffs rate diminished to 5.9 %. The occupation openings declined to 5.0 million (Bureau of Labor Statistics, 2020). The high level of decline was attributed to the pandemic. These kind of trends are worrying and call for immediate remedy from all stakeholders in an organization.
A good case study is our organization which runs numerous stores across the globe. Recently, although it remained one of the largest retailers of office and home furniture is suffered a huge blow of negative publicity due to increased employee turnover. Despite the issue being categorized as a minor issue, the organization faced a lot of negativity from those that were reached by the media for comments. Majority of the former employees linked their departure to managerial insensitivity issues, poor working conditions and some cited personal need to pursue lucrative opportunities. The media noted that about 51% of the retained employees were aggressively looking for novel opportunities in other firms as 71% of the workforce stated that the management was reluctant to act on the already known problems.in this case the media noted that the turnovers adversely affected the organization, for example those retained were highly demoralized, there was also loss of skilled employees. It was also noted that some turnovers were as a result of natural causes such as death or retirements while others were purely voluntary.
The contemporary trends in the U.S. workplace indicate that there has been widespread turnover in various organizations. However, the rate has reduced in the past couple of months due to the Covid-19 pandemic. The previous years have had a trajectory rate of turnover.
Looking at all these one may wonder, what are the impacts of turnover? The negative publicity on our organization was found to yield undesirable impacts. For instance, the morale of the retained employees decreased which consequently reduced productivity of the company. The company also lost skilled workforce and most innovative talents during the process as some employees left for more rewarding opportunities. Cloutier, Felusiak, Hill & Pemberton (2015) found that general organization performance as well as employee productivity is negatively impacted when employee turnover surge. High turnover results in the loss of trained and experienced staff having vast knowledge regarding the goals and policies of the organization as well as effective ways of accomplishing them.
Employee turnover is one of the most excruciating organizational issues that plague a firm. Statistically it has been found that replacing an employee comes with a substantial cost to the firm, this according to the Center for American progress. For example, employees earning a salary of $50,000 p.a which is almost 75% of the entire employees in the USA, the turnover cost is 20% of the salary. This cost is incurred in backfilling roles for the vacant positions such as recruiting, salary on hiring as well as onboarding costs. There are also issues of litigation. Statistically in the year 2017, the employee turnover trends increased by 8.3% from the previous year and constituted an 88% increase since the year 2010. In the year 2018, the overwhelming 41.4 million workers in the United States willingly left their occupations, which constituted a turnover of approximately 27% as shown in figure 1 (Retention Report, 2019). In April year 2020, the total number of departures declined by 4.8 million to approximately 9.9. Within departures, the rate of voluntary quits decreased by 1.4 % while discharges and layoffs rate diminished to 5.9 %. The occupation openings declined to 5.0 million (Bureau of Labor Statistics, 2020). The high level of decline was attributed to the pandemic. These kind of trends are worrying and call for immediate remedy from all stakeholders in an organization.
A good case study is our organization which runs numerous stores across the globe. Recently, although it remained one of the largest retailers of office and home furniture is suffered a huge blow of negative publicity due to increased employee turnover. Despite the issue being categorized as a minor issue, the organization faced a lot of negativity from those that were reached by the media for comments. Majority of the former employees linked their departure to managerial insensitivity issues, poor working conditions and some cited personal need to pursue lucrative opportunities. The media noted that about 51% of the retained employees were aggressively looking for novel opportunities in other firms as 71% of the workforce stated that the management was reluctant to act on the already known problems.in this case the media noted that the turnovers adversely affected the organization, for example those retained were highly demoralized, there was also loss of skilled employees. It was also noted that some turnovers were as a result of natural causes such as death or retirements while others were purely voluntary.
The contemporary trends in the U.S. workplace indicate that there has been widespread turnover in various organizations. However, the rate has reduced in the past couple of months due to the Covid-19 pandemic. The previous years have had a trajectory rate of turnover.
Looking at all these one may wonder, what are the impacts of turnover? The negative publicity on our organization was found to yield undesirable impacts. For instance, the morale of the retained employees decreased which consequently reduced productivity of the company. The company also lost skilled workforce and most innovative talents during the process as some employees left for more rewarding opportunities. Cloutier, Felusiak, Hill & Pemberton (2015) found that general organization performance as well as employee productivity is negatively impacted when employee turnover surge. High turnover results in the loss of trained and experienced staff having vast knowledge regarding the goals and policies of the organization as well as effective ways of accomplishing them.